Investor Scheme Leads to Death Sentence

By

Dinny McMahon

May 17, 2013 12:03 p.m. ET

BEIJING—A Chinese court sentenced a businesswoman to death after prosecutors accused her of running a Ponzi scheme that defrauded investors of about $70 million, shining a light on potential abuses in China's underground banking system and the severe penalties they can draw.

According to a statement posted this week on the court website of the city of Wenzhou—known for its thriving private sector and informal banking networks—39-year old Lin Haiyan started soliciting funds in 2007, promising investors high returns at low...